Headline RoundupOctober 13th, 2022

Core Inflation Index Rises to New 40-Year High

Summary from the AllSides News Team

The Labor Department reported Thursday that core inflation rose to a new 40-year high in September, with the consumer price index (CPI) rising 0.4% from September and 8.2% on an annual basis. The CPI rose 0.1% in August from July, and 8.3% on an annual basis.

Key Quotes: "Inflation has built up a lot of momentum over the last year. That’s going to keep inflation higher than the Federal Reserve wants it for at least a couple more months—if not a couple more quarters", said Bill Adams, chief economist at Comerica Bank.

For Context: U.S. inflation continues to set new 40-year highs, as prices of food, housing, medical care, and other items continue to increase. The Biden Administration passed the Inflation Reduction Act in August seeking to address the issue, and the Federal Reserve has increased its benchmark interest rate five times this year to cool off consumer demand for borrowing. Gas prices have fallen for three consecutive months, but remain 18.2% higher than a year ago.

How the Media Covered It: Some right-rated sources noted that President Biden has blamed purportedly greedy corporations and Russian President Vladimir Putin's war in Ukraine for inflation. Some left-rated outlets pointed out that Federal Reserve officials largely decided it was better to raise interest rates aggressively now in an attempt to avoid economic pains in future months.

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